New York: Jewelry retailer Tiffany & Co. said Friday that its first-quarter profit plunged 62% on a steeper-than-expected drop in sales as consumers continued to pull back on spending.
Still, the earnings matched Wall Street’s expectations and the company maintained its profit outlook for the full year.
The New York-based retailer earned $24.3 million, or 20 cents per share, for the three months ended 30 April, down from $64.4 million, or 50 cents per share, a year ago.
Analysts polled by Thomson Reuters, whose estimates generally exclude one-time items, predicted net income of 20 cents per share.
“Despite reduced consumer demand in the luxury sector, Tiffany is, and is projected to remain, solidly profitable and will generate substantial cash from operations,” chairman and chief executive Michael J. Kowalski said.
Sales fell 22% to $523.1 million from $668.1 million a year ago and below analysts’ expectations for revenue of $533 million.
Sales in the Americas slid 31%, with US same-store sales down 34%. At its New York flagship stores, same-store sales were off 42%.
Smaller sales declines were reported overseas, with Asia-Pacific sales down 9% and European sales off 8%.
Excluding the negative impact of the stronger dollar, worldwide sales slipped 18% and same-store sales dropped 21%.
Tiffany reaffirmed its guidance for full-year earnings from continuing operations of $1.50 to $1.60 per share. Analysts expect profit of $1.56 per share.
The company ran 209 stores and boutiques at quarter’s end, down from 192 shops a year earlier.